McHenry County Residents Can Prepay Property Tax Bills

Why would one want to do that?

Property taxes will still be flying out of homeowners’ wallets, but under a Republican proposal, they may not be fully deductible from one’s Federal income taxes.

With the Federal income tax being amended to preclude deduction of property and state income taxes above $10,000 from one’s Federal income, some people might be interested in what McHenry County Treasurer offers.

She has a prepayment plan for real estate taxes that would allow residents to pay next year’s amount before the end of December, thus gaining a larger income tax deduction on this year’s Federal tax form.

“There is a link on my website on the left ‘Advance Tax’ that gives taxpayers the info and agreement that needs to be signed by the homeowner

“In fact, we have one taxpayer that is prepaying two years of taxes.”


McHenry County Residents Can Prepay Property Tax Bills — 15 Comments

  1. How about a 10% discount if you prepay next years prop tax ?

    This could be a win/win for both sides, no ?

  2. Great idea. I would recommend paying only that amount which puts you over the 10k cap.

  3. What is scary is that homeowners think it’s ok to pay over 10k in taxes.

    Anyone who has traveled outside McHenry County realizes your schools are crap and the services you receive are no better than anywhere else.

    The wool is tight around the eyes..

  4. With all due respect, I think I’ll wait for my CPA’s opinion, which he won’t give until he sees the language.

  5. Only if interest rates were really high and the Treasurer invested the prepaid taxes.

  6. CP is right on target.

    Wait til the GOP tax cut cuts Illinois property tax exemptions.

    Watch the exodus!!!

  7. The only reasonable option is to move out of IL and rebuy once all the houses are 25/30% less and they fix the taxes.

  8. What if we form cooperative reits, buy each other’s houses, and rent them back to ourselves?

    Prop tax is deductible if it is a business expense on rental property.

  9. The idea is to pay early so you can take full advantage of current tax code.

    It’s not a bad idea to be honest if you have over $10k in property tax as we all know the new plan is going screw us in this crap hole state.

  10. Or, if we list our houses on airbnb, can we claim a portion of prop tax as business expense?

  11. It doesn’t matter what your tax bill is (under or over $10k), you should prepay your taxes this year either way.

    Chances are, with the standard deductions doubling for next year, you won’t be itemizing your taxes and therefore, you will receive the standard deduction.

    Pay the entire bill now – this is probably your last chance to itemize them!

  12. Hold on before paying and be sure to consult a tax accountant.

    The IRS just ruled (12/28) that you must have an assessment AND A BILL before property taxes will be deductible in 2017.

    We have our assessments, but the bills are not issued until later in 2018.

    So it sounds to me like prepayments WILL NOT be deductible in 2017.

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